Business development by using acquisitions to bridge

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Business development by using acquisitions to bridge critical capability gaps and technology. Cost Leadership by vertically integrated operations and optimization of operational costs. 2 | P a g e
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Share Holding Pattern The Company currently has Share Capital of 239.93 crores, with face value of 1 rupee per share. As of 30 th April, 2018, company share is trading at 528 rupees. The market cap of the company stands at 1,267.8 Crores. 54% 16% 15% 1% 13% ShareHolding Pattern Promoter & Group Foreign Institutional Investors Mutual Funds and Insurance Companies Others Institutions Non Institution Sun Pharma and Peers Sun Pharma market share has consistently increased from past few years, after taking over business of Ranbaxy it emerged as largest company and currently enjoys 8.5% market share in India Pharma, where It gets 26% of sales only from India and rest from International Markets. 8.50% 6.20% 4.60% 4.30% 3.60% 3.40% 3.30% 3.20% 2.90% 2.80% 2.80% 2.60% Market Share IN India 3 | P a g e
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Financials Below are the Key Performance Indicators of the Companies for FY 2013 - 17, these indicators will help us understand how the company is growing. FY13 FY14 FY15 FY16 FY17 11,300 16,080 27,433 28,269 31,308 Net Sales (Rs Crores) FY13 FY14 FY15 FY16 FY17 11,326 14,192 27,629 28,649 32,203 Total Income (Rs Crores) FY13 FY14 FY15 FY16 FY17 3,573 5,658 4,777 5,401 6,964 Net Profit (Rs Crores) 4 | P a g e A healthy improvement in sales is observed year-on-year. Sales are improved significantly from FY15 due to Ranbaxy Acquisition. A healthy improvement in income is observed year-on-year. It also looked flat from FY15 onwards because of pricing pressures & competition in both US and India Markets, this is expected to continue in upcoming FY’s A healthy improvement in Net Profit is observed year-on-year.
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FY13 FY14 FY15 FY16 FY17 31.61 35.18 17.41 19.1 22.24 Net Profit Margin(%) Observation : The company seems to have an impressive growth record, but it has some work to do to improve its efficiencies in controlling expenses and push Net Profile Margins up, given it got huge price pressure and competition in its key markets like India and US, where it gets 26% and 45% revenues respectively. Below are the key facts to consider for understanding financial health of company. FY13 FY14 FY15 FY16 FY17 Current ratio 3.7 3.1 1.7 2.3 1.8 Debt to Equity Ratio 0.01 0.13 0.35 0.25 0.22 Price to Earnings Ratio 24.3 37.8 37.5 40.6 21.6 FY13 FY14 FY15 FY16 FY17 565 20,990 15,635 8,482 6,107 Net Cash Flow (Rs Crores) FY13 FY14 FY15 FY16 FY17 12.4 13.1 18.9 18.9 29 2.5 1.5 3 1 3.5 Earning Per Share (Rupees) EPS Linear (EPS) Dividend 5 | P a g e Net Profit Margins looks almost flat, there is slight dip in FY 15 & 16, but the company recovered in FY17. This indicates company has some work to do in improving its efficiencies.
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0 200 400 600 800 1000 1200 Share Price India Pharma sector - Sun Pharma The current market size of Indian Pharma Sector stands at $27.57 billion (reported in 2016) is expected to reach a mark of $55 billion by 2020. A growth of 9 to 10% is expected YOY, it is equally important for us to understand how Sun Pharma is performing considering the entire Pharma Industry and its peers.
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